1172.HK WACC - Weighted Average Cost of Capital
The WACC of Magnus Concordia Group Ltd (1172.HK) is 5.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.8% | 7.3% |
| Tax rate | 11.3% - 27.5% | 19.4% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 6.5% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.49 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.8% |
| Tax rate | 11.3% | 27.5% |
| Debt/Equity ratio | 1.7 | 1.7 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 6.5% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1172.HK | Magnus Concordia Group Ltd | 1.7 | 0.74 | 0.3 |
| 1481.HK | Smart Globe Holdings Ltd | 0.02 | -0.34 | -0.34 |
| 1540.HK | Left Field Printing Group Ltd | 0.05 | -0.1 | -0.09 |
| 1631.HK | REF Holdings Ltd | 0.3 | 0.87 | 0.69 |
| 1841.HK | A.Plus Group Holdings Ltd | 0.07 | 0.29 | 0.28 |
| 1975.HK | Sun Hing Printing Holdings Ltd | 0.61 | 0.66 | 0.43 |
| 8385.HK | Prosperous Printing Co Ltd | 11.53 | 1.8 | 0.16 |
| 8391.HK | Cornerstone Technologies Holdings Ltd | 0.47 | 0.28 | 0.2 |
| 8416.HK | HM International Holdings Ltd | 0.5 | 0 | 0 |
| 8448.HK | Universe Printshop Holdings Ltd | 1.57 | -0.43 | -0.18 |
| Low | High | |
| Unlevered beta | 0.1 | 0.23 |
| Relevered beta | 0.24 | 0.57 |
| Adjusted relevered beta | 0.49 | 0.71 |
1172.HK's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 1172.HK:
cost_of_equity (7.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.49) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.